Dropbox Inc. (DBX) - Get Dropbox Inc Report shares slipped lower Tuesday after the online document sharing and storage group said it would cut its global workforce and that its chief operating officer is setting down.
Dropbox said in a Securities and Exchange Commission filing that it will reduce its global headcount by 315 in part because its own policy of allowing employees to work from home during the coronavirus pandemic has meant the company requires "fewer resources to support our in-office environment." COO Olivia Nottebohm will also leave the company as of February 5th, Dropbox said.
"Over the past year, we’ve talked a lot about the importance of running a tight ship and getting the company ready for the next stage of growth. This will require relentless focus on initiatives that align tightly with our strategic priorities, and having the discipline to pull back from those that don’t," said CEO Drew Houston.
"Unfortunately, this means that we’re reducing the size of some of our teams. I realize this is incredibly hard on the Dropboxers and their families who are impacted, and I take full responsibility for this decision. This is one of the toughest decisions I’ve had to make in my 14 years as CEO."
Dropbox shares were marked 3.4% lower in early trading Wednesday following the job cuts announcement to change hands at $22.80 each.
Dropbox posted third quarter net income of $32.7 million on sales of $487.4 million, a 14% increase from the same period last year, with gross margins expanding to 78.8%.
Co-founder Houston said at the time that "the shift to distributed work means that our opportunity has never been bigger" but cautioned that "we believe this shift to distributed work will continue long after the pandemic ends."